“James Rickards, a top adviser for the Pentagon and CIA, is sounding the alarm that America is on the brink of a global “financial war.”
“Rival nations and terrorist organizations are developing capabilities in unconventional warfare,” Rickards commented in a Newsmax interview. “Things like cyber warfare, biological or chemical warfare, and now, financial weapons of mass destruction.”
And this “financial war” is a battle America isn’t prepared to win.
Rickards believes that as this conflict escalates, it will “cause oil to skyrocket above $190 a barrel, gold to surge to $3,000 an ounce, and, in its aftermath, it could completely decimate the wealth of millions.”
Rickards’ assessment is not one to be taken lightly. The first two “financial wars” he refers to in the interview led to World War II and the economic stagflation of the late 1970s.
And unfortunately, Rickards isn’t alone in his assessment.
MSN Money commented, “The end game for all this . . . is higher inflation combined with economic stagnation,” and The Financial Times reported that “Japan may have fired the first shot.”
The Voice of Russia warned, “Russia is getting ready to defend itself in the global financial war which is going to break out in the near future.”
So What Exactly Is This ‘Financial War?’
It’s a battle over money . . . also known as a “Currency War.”
In an ironic twist, political figures of each country are trying to depreciate their own currency. In theory, this strategy will give a short-term boost to their own economy, while handicapping foreign countries.
REPORT: Currency War Leads China to Secretly Stockpile Gold
But there are several flaws in this line of thinking.
“The problem is that everybody can’t play the depreciation game at the same time: One country’s advantage is the others’ disadvantage,” according to US News & World Report.
Essentially, currencies around the world — dollars, yen, and pounds — are losing their purchasing power.
We all know this as inflation. In normal times, inflation runs around 3%. But if a currency war erupts, it could easily run at 10% to 50% per year.
Should You Be Worried?
When a country intentionally tries to devalue its own currency, the very money in one’s bank account loses purchasing power.
Gas prices soar. Groceries get more expensive. And utility bills climb higher every month. ….”Twitter